Break free from the "hub and spoke" mentality

By: Kendall Rawls
Published: January 8th, 2024

The mark of a truly effective leader is the seamless operation of a business whether they are present or not. This holds especially true for multi-unit franchise owners navigating growth and succession strategies. The "hub and spoke" management approach, prevalent in entrepreneurial-owned businesses and multi-unit franchises, can impede a business's ability to function smoothly in the absence of the owner, posing challenges to growth, scaling, and succession planning.

Under the hub and spoke model, all information and decisions flow through a single individual—the hub. The spokes represent employees fulfilling specific roles and contributing to the business' success as defined by the hub.

While this approach may be common in fledgling businesses and among control-craving owners, it comes with drawbacks that hinder progress. The business's growth is confined to the owner's capacity. Business decisions suffer delays when the hub is absent. Employees lack the empowerment to make decisions, hindering their development. In addition, hubs tend to overextend themselves, leading to micromanagement and a perceived lack of trust among employees. This creates weaknesses in the business that can't be concealed.

To maximize your business's value and ensure sustainability, effective delegation is crucial. Here are strategies to leverage your team's talents and skills:

• Understand your team's strengths. Assess each team member's skills and strengths, and identify areas of expertise and passion.
• Clearly define expectations. Communicate objectives, expectations, and desired outcomes clearly, and provide a detailed brief with specific guidelines.
• Match tasks to skills. Assign tasks aligning with each employee's capabilities, and ensure task complexity matches experience levels.
• Encourage ownership. Empower employees to take ownership of their tasks, and allow them to make decisions and take responsibility.
• Provide adequate resources. Ensure employees have necessary resources, tools, and information, and offer training for skill enhancement.
• Establish a feedback system. Create an open feedback loop, and provide regular feedback, highlighting strengths and areas for improvement.
• Encourage initiative. Foster a culture where employees feel comfortable taking initiative, and acknowledge and reward proactive behavior.
• Set realistic deadlines. Establish realistic deadlines to manage expectations, and consider time requirements for quality work.
• Build trust. Demonstrate confidence in your team's abilities, and avoid micromanaging to preserve trust.
• Communicate effectively. Maintain open communication lines, and be available for questions and clarification.
• Celebrate achievements. Recognize individual and team achievements, and reinforce a positive work environment.
• Learn from mistakes. Accept mistakes as learning opportunities, and encourage improvements based on lessons learned.
• Delegate authority, not just tasks. Delegate decision-making authority along with tasks, and empower employees to make choices within their responsibilities.
• Provide growth opportunities. Offer professional development opportunities, and support employees in expanding skills and knowledge.
• Lead by example. Demonstrate a willingness to delegate at the leadership level, and model the behavior expected from the team.

Developing specific job descriptions, coaching, training, and mentoring will prepare individuals to assume responsibilities. The goal is to replace yourself with an equally effective hub—be it one key person or several key players.

If your multi-unit business heavily depends on you, consider strategic changes to reduce dependence and propel your business to the next level. Reflect on how well your business functions in your absence and take steps to avoid letting the hub and spoke approach choke your business' potential.

Kendall Rawls knows and understands the challenges that impact the success of a family-owned business. Her unique perspective comes from her educational background and her experience as a second-generation family member employee of The Rawls Group - Business Succession Planners. For more information, visit seekingsuccession.com or email info@rawlsgroup.com.

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